Without a Brexit agreement, a shipment of cut flowers to the United Kingdom is going to cost € 120 to € 190 more, mostly because of phytosanitary inspections. The amount excludes any extra costs related to customs formalities. This is the outcome of a study conducted by KPMG, commissioned by the Dutch Ministry of Economic Affairs & Climate and the Ministry of Agriculture, Nature & Food quality.
These estimates would lead to a cost increase of around 0.8% to 1.3%, based on the current turnover value of all flowers traded between the Netherlands and the UK.
Other aspects that could have a strong impact on the flower trade with the UK are the declining value as a result of the limited shelf life of cut flowers in combination with delays in the logistical process, customs requirements for cut flowers entering the UK, a decreased demand for cut flowers from the UK and any other challenges that Brexit is going to bring to the trade, like the design of IT systems.
Cut flowers were one of the total of six cases that were described in the report. For the Netherlands as a whole, the costs for imports and exports will go up by at least € 387 to € 627 million per year, if the UK leaves the European Union without a trade agreement. This amount excludes still to be calculated customs duties, VAT related costs and any sector specific market access requirements that are unknown at the moment.
“This study confirmed that Brexit is going to have major economic consequences. Entrepreneurs should get ready. The government is happy to help, but entrepreneurs must do the most important tasks themselves”, says State Secretary Keijzer of Economic Affairs & Climate in response to the report.
Focus on border controls
The study included various recommendations with regards to faster and easier border controls, such as: increasing the customs capacity and the number of inspection locations, introducing a fast lane and investigating the possibility of checks during the ferry crossover to the UK. The Ministry of Economic Affairs & Climate and the Ministry of Agriculture, Nature & Food quality will discuss these recommendations and their feasibility with the relevant inspection authorities. The aim of all parties involved is to limit the inconvenience for entrepreneurs, lorries and shipments at the border as much as possible.